Letter Of Intent Startup Template for Denmark

The Letter of Intent Startup template is designed for use in the Danish legal context where parties are entering into preliminary negotiations for startup-related transactions. This document is typically used when a startup is seeking investment, planning a strategic partnership, or preparing for an acquisition. It provides a structured framework for negotiations while maintaining flexibility, combining non-binding commercial terms with enforceable provisions on confidentiality and exclusivity. Under Danish law, while most of the LOI's provisions are non-binding, certain elements like confidentiality clauses are legally enforceable, making it a crucial tool for protecting sensitive information during negotiations. The document serves as a roadmap for the transaction, outlining key terms, valuation expectations, due diligence requirements, and timelines, while reflecting Danish legal requirements and business practices.

1. Parties: Identification of all parties involved, including full legal names, registration numbers, and addresses

2. Background: Context of the proposed transaction or relationship, including brief description of the startup's business and the purpose of the potential transaction

3. Definitions: Key terms used throughout the document

4. Purpose and Scope: Clear statement of the parties' intentions and the scope of the proposed transaction or relationship

5. Key Commercial Terms: Outline of the principal terms being considered, such as proposed investment amount, valuation, or collaboration structure

6. Due Diligence: Framework for the exchange of information and due diligence process

7. Confidentiality: Obligations regarding the protection and use of confidential information exchanged

8. Exclusivity: Period during which the parties agree not to negotiate with other parties

9. Timeline: Expected timeline for negotiations and completion of the proposed transaction

10. Non-Binding Nature: Clear statement about which provisions are binding (typically confidentiality, exclusivity, and governing law) and which are non-binding

11. Costs: How costs related to the negotiation and transaction will be borne

12. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes